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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: August 28, 2015
SUBJECT:
An Ordinance Providing for the Issuance of $69,185,000 Aggregate Principal Amount of General Obligation Refunding Bonds, Series 2015-C, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, Confirming the Sale Thereof, and Providing for the Levy and Collection of a Direct Annual Tax for the Payment of Principal of and Interest on Said Bonds.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2015-C General Obligation Refunding Bonds.
BACKGROUND:
In April of 2008, the city issued its Series 2008 GO Bonds in the amount of $85.5 million. The bonds were issued to provide resources for the construction of the new Police Headquarters and the purchase of E911 equipment. The true interest cost associated with the issue was 4.66%. The final maturity of the bonds included in the issue is December 30, 2038.
DISCUSSION:
Based upon an evaluation of the outstanding Series 2008 GO Bonds and currently available borrowing rates, we have determined that it would be advantageous to refund the bonds in the series that mature after December 31, 2015. This amounts to $68,655,000 in principal.
Attached is a draft ordinance authorizing the issuance of the refunding bonds. The final ordinance will be prepared after the bonds are sold and the exact interest costs are known. However, our target for savings is a net present value of 10.0% (about $6.9 million).
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance that would authorize the issuance of the city's 2015-C GO Refunding Bonds.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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